Civil society organisations are founded on values, principles, and ambitions, and they exist to serve the public good. There has always been an art to finding and securing funding that enables organisations to carry out their mandate while satisfying funders’ needs. However, in this emerging funding environment, with new philanthropic actors, alternative finance models, and evidence-driven approaches to giving, it is more important than ever to examine how organisations can secure the resources they need without compromising the mission they serve.
This is not simply a conversation about fundraising. It is a conversation about power, accountability and who gets to define priorities in our rapidly changing world.
The intentions, ambitions and priorities of funders have a huge influence on how and what organisations can do. Effective Altruism has been getting a lot of press recently, including a front cover piece in The Economist. This recent social and philosophical movement advocates using impartial data and evidence-based approaches to solve pressing issues and provide impact. Originating from Oxford academics, this movement has become very influential in Silicon Valley and has entered the debate on AI and governance. For some, this movement provides direction for where funding should be prioritised. Effective giving, as it is known, uses reason, data and evidence to decide where money can be used most effectively.
What does this mean for civil society organisations? There are welcome aspects to this approach, including better metrics and ensuring that we are creating outcomes and impact. Of course, civil society organisations should be able to demonstrate that resources are being used well. We should be willing to learn from evidence and adapt when programmes are not achieving intended results. Accountability matters.
However, efficiency is only one dimension of effectiveness. Many of the most important contributions made by civil society are difficult to measure, including building trust within communities, strengthening social movements, defending rights, supporting participation, challenging inequality and working on systemic issues. These approaches do create long-term change, but they rarely fit neatly into cost-benefit calculations.
The challenge, therefore, is not choosing between effectiveness and values. It is recognising that some of society’s most important goals cannot always be measured in ways that satisfy conventional funding frameworks.
The growing influence of effective giving is part of a broader shift in how resources are mobilised and distributed. New forms of philanthropy and the growing role of ultra-high-net-worth individuals are changing the funding landscape.
This raises important questions about influence and accountability.
Naturally, new funding streams can unlock resources, support innovation and move funding more quickly than traditional aid mechanisms. It is, however, important to recognise that these new emerging funders can also concentrate agenda-setting power in the hands of a relatively small number of wealthy individuals, foundations and institutions. Is this democratising social change, or is it privatising decisions that should come from civil society?
When assessing funding sources, whether public, private or philanthropic, a key question to ask is whether the funders can help organisations stay focused on their mission and accountable to the communities they serve.
In this post-aid era, where many traditional funding streams have been reduced or redirected, organisations are understandably exploring alternative models for financial sustainability. This includes engagement with high-net-worth individuals, trust-based philanthropy, social enterprise approaches, blended finance, community-led funding mechanisms and other innovative forms of finance.
At the Centre, we have been exploring these issues through research into alternative financing approaches that seek to align financial sustainability with localisation and a more locally led action. This work is informing our forthcoming White Paper, “Beyond Aid: Building Sustainable Pathways for Locally Led Civil Society,” which examines how new financing approaches can support a more sustainable, equitable and locally led civil society sector. For international civil society organisations, it is vital to be transparent about the objectives behind exploring new financial approaches. It is also an opportunity to reconsider how financial decisions shape organisational independence, accountability and the distribution of power. The future of civil society will of course require financial innovation. Organisations cannot ignore changing economic realities, emerging philanthropic actors, or new funding mechanisms. But innovation should not simply mean adapting to donor preferences. It should create opportunities to strengthen organisational independence, shift power and build a more sustainable future for locally led civil society.
As organisations explore alternative finance, the key question is not: How do we attract new sources of funding? Instead, it is: How do we build financing models that allow us to remain accountable to the people and causes we exist to serve?